3/23/2020

Production of Refuse-Derived Fuel (RDF) as Alternative

Fuel in Cement Kiln
2nd ANSWER 2019, 13-14 November 2019, Yogyakarta

SBI - MSW to RDF

In January 2019, Semen Indonesia Group represented by its subsidiary; PT Semen

Indonesia Industri Bangunan (SIIB), acquired majority shares of PT Holcim
Indonesia Tbk. The company then changed its name consequently to
PT Solusi Bangun Indonesia Tbk on 11 February 2019.

53 55% 37.2 > 8,000

Million tons of cement Market share in
per annum Innovative portfolio Indonesia Trillion of revenue Employees

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OUR VISION

To be the Biggest Building Materials and Solutions

Provider in The Region

MISSION
• Customer Satisfaction oriented in every business initiatives
• Implement best standards to secure best quality
• Focus to create environment preservation and sustainable social
responsibility
• Provide best added-values for all stakeholders
• Focus on human resources as the center of company development

Sustainability as our competitive advantages

VISION:
To be the Biggest Building Materials and Solutions Provider in the Region

PROFIT PLANET PEOPLE

Demonstrating leadership in
Providing solutions (innovative environmental stewardship and
products & services) to address being a responsible role model Creating shared value to community.
urban problems (waste, floods, for future generations.
poor air quality, climate).
1. CO2 reduction 1. Keeping people safe
2. Utilization renewable 2. Community empowerment
Generate revenue from through partnership
resources
sustainable solutions 3. Social license acceptance
3. Biodiversity initiative
4. Water management

SUSTAINABLE SOLUTION CIRCULAR ECONOMY PEOPLE & COMMUNITY

CLIMATE, WATER & NATURE

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Sustainability – Triple Bottom Line

Why we need SD?

1. Address Risk : Companies may not be able to
continue to create capital over the long term
if natural, social, financial and manufactured
capital is being eroded elsewhere.
2. Attract capital: Investors are increasingly
paying attention to environmental, social and
governance (ESG) risks when making
investment decisions.

"Sustainable development
is development that meets the needs
of the present without compromising
the ability of future generations to
meet their own needs.“
(Bruntland report, UN 1987)

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Sustainable Development Goals – SDGs indicator related

to cement industry

Over the time, energy resources becoming more

expensive and scarce.
An alternative energy is a solution to maintain
competitiveness and avoiding land degradation
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Sustainability and AFR

How AFR answers Sustainable Development demand

ECONOMICAL BENEFITS ENVIRONMENTAL BENEFITS SOCIAL BENEFITS
Preservation of natural resources and The social benefits as follows:
Through AFR we are able to reduction of the global and local 1. Effective contribution to
improve our industrial environmental impacts: waste management at
competitiveness by 1. Reductions of the overall emissions local and regional levels.
reduction of the overall as the emissions of our kilns are not 2. Regional job creation in
manufacturing costs through affected by the AFR, but other waste collection and pre-
two main factors: waste management solutions have treatment facilities
additional emissions too. 3. Especially in developing
1. Substitution of traditional 2. Reduction of the greenhouse effect countries, saving of public
fossil fuels and/or traditional as no "fresh" fossil fuel is used funds otherwise needed
raw materials 3. Reduction of the natural resources to build additional
2. Additional revenues from extraction in our quarries. incinerators as the
offering waste management 4. Safe and optimal waste treatment infrastructure (cement
solutions as the clinker manufacturing kilns) is already in place or
process ensures the right build up by private
conditions for safe waste businesses
treatment
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SBI SD Dashboard 2016-2018

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CO2 Emission Reduction 2016-2018

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SBI Sustainable Solution Initiatives

Nathabumi – Business Unit Providing Waste Management

services using Co- processing Technology at Cement Kiln

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Nathabumi – Professional Waste Management Services

• Since 2007 as Business unit at PT SBI Tbk – We do
Waste Management for Industrial Waste and
Municipalities for Hazardous and Non Hazardous
waste material
• We are processing and managing waste from Industrial
and municipalities activities to be eliminate through
our co-processing method in Cement Kiln as
Alternative Fuel and Raw material
• The business unit has managed to provide waste
management solution to more than 400 clients such
as Chevron, Pertamina, Unilever and Nike.

Our Services :
• Hazardous Waste Management Services
• Non Hazardous Waste Services
• Field Services
• Tailor Made Services
• Consulting Services
• Secured Destruction Services
• ODS Destruction Services
• Document Destruction Services

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A Wide Range of Waste We Can Handle

Solid Liquid
• Plastics and used or contaminated packaging materials • Solvents
• Oil and solvent contaminated rags • Spents oils
• Consumer products ( Off Spec or expired) • Contaminated liquids
• Rubber waste or manufacturing off cuts Sludge
• Rejected packaging materials • Oil sludge
• Textile or garment waste • Paint sludge
• Bottom ash and other process residues • Petrochemical sludge
• Waste Water Treatment Sludge or filter cake
• Foundry Sand Gas
• Contaminated Soil • Phased out or contaminated
refrigerant gases
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Regulatory Compliance

Entity Unit/Plant Scope Permit Deskripsi

Permit to manage & utilized hazardous

PT Solusi Bangun Indonesia Tbk Narogong Plant AF, AR Kep Men LH Nomor 478 Tahun 2015
waste materials (B3)

Permit to manage & utilized hazardous

PT Solusi Bangun Indonesia Tbk Cilacap Plant AF, AR Kep Men LH Nomor 896 Tahun 2016
waste materials (B3)

Permit to manage & utilized hazardous

PT Solusi Bangun Indonesia Tbk Tuban Plant AR SK No 392/Menlhk/Setjen/PLB.3/8/2017
waste materials (B3)

Entity Unit/Plant Cakupan Permit Deskripsi

AR
Permit to manage & utilized hazardous
PT Solusi Bangun Andalas Tbk Lhoknga Plant (Flyash SK No 620/Menlhk/Setjen/PLB.3/8/2016
waste materials (B3)
Bottom Ash)

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Co-Processing, The Safer & Environmentally Friendly Solution

SBI through Nathabumi,

Specialized in a secure
form of waste management
known as Co-processing.

Co-processing - means the substitution of fossil fuel and primary raw material by waste
derived materials in industrial processes.

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In The Cement Kiln

Q: What happens to the waste?

A: It is subjected to ultra high temperature
over long residence time, completely
destroys all organic materials.
Q: What about gas emissions? Flame temperature >1,800°C
A: Chlorine and sulphur from organic
material produce acid gases (HCL & SO2)
which are absorbed and neutralised by
limestone and other alkaline materials.
Q: And everything else?
A: Inorganic constituents become part of
the clinker.
Q: Can waste affect cement quality?
A: All waste inputs are carefully assessed
to guarantee the compatibility of the
materials with the cement process and the
quality of cement.

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Waste Utilization Background

Utilization of Waste Contributes to Reducing Global Warming

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Minimizing Risk by Maximizing Work Safety

• Internal & External routine audits

• OHS Training for transporters and
contractors
• Customer Manifest Training
• We held certification in ISO 90001, ISO
14000 and OHSAS 18001 Quality
Management System.
• We identify changes to laws and regulations
and periodically analyze the effectiveness of
implementation.
• We ensure implementation of the AFR
Directive & Policy as part of our
commitment to compliance.
• We maintain good relationships with our
stakeholders (the surrounding community,
government, employees and contractors).

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Waste Pre-treatment Facility in Narogong Plant

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Waste Laboratory

• ISO 17025 accredited

laboratory
• Skilled technicians specialise in
waste analysis, ensuring the
safe & effective management
of waste streams.

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Diverse Client Base and Extensive Reach

Hazardous Waste Management Secured Destruction

On-Site Waste Management Waste Transportation Services

Waste Analysis Laboratory Waste Consultation Service

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Waste Co-processing Volume

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MSW to RDF Development Project

Map of potential future development of MSW business in Semen Indonesia Group
SBI Plant – lhoknga Aceh
 Banda Aceh : 300 tpd

SI Plant – Indarung Padang

 Padang : 650 tpd
SI Plant - Tonasa
 Maros regency : 100 tpd
 Pangkajene regency : 150 tpd
SI Plant – Rembang, Jawa Tengah  Makassae regency : 1.200 tpd
 Rembang regency : 175 tpd
 Jepara regency : 150 tpd

SBI Plant – Narogong, Bogor

 Tangerang : 5.500 tpd
 DKI Jakarta : 7.500 tpd
 Bogor regency : 2.500 tpd
 Depok : 1.000 tpd
SBI Plant Tuban & SI Plant Tuban
 Surabaya : 2000 tpd Ongoing development project:
SBI Plant – Cilacap, Central Java  Tuban regency : 650 tpd
 Cilacap regency : 800 tpd  Gresik regency : 650 tpd 1. Cilacap : SBI RDF Pilot Project
 Yogyakarta : 1000 tpd  Probolinggo regency : 200 tpd 2. DKI Jakarta : SBI – Landfill
 Banyumas regency : 600 tpd Mining study

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Technology of processing MSW into fuel

Basic principle of MSW utilization as alternative fuel

Screening,
Shredding,
Drying

RDF or Refused Derived Fuel

Is renewable energy produced from municipal solid waste with pre-treatment process

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Technology of processing MSW into fuel

Waste type that required specific treatment
INDONESIA TYPICAL ▪ To sort high CV waste in
COMPONENT (JAKARTA) EUROPE Indonesia is not economic viable
(%) (%) ▪ In each ton there is lesser
Food and Yard Waste 67 20 high CV material in
Indonesia waste type
Paper (high CV) 6 40 ▪ Government required full
solution
Plastic (high CV) 17 6
▪ Food waste / organic waste are
Metal 0.5 8 the biggest composition in
Indonesia
Glass 1 8 ▪ Contribute to high moisture
level content in the waste
Other (textiles, stone, sand, etc.) 8.5 18 ▪ There is a unique condition
that can be benefit in a waste
TOTAL 100 100 management processing

Moisture content % 55-60 20-25

Source: Clinton Foundation’s study in Jakarta

Because of the average of Indonesia waste are having high moisture content, therefore to
turn it into alternative fuel required a drying process technology.

Forum Diskusi RDF, Operation, LR, 2017-09-04 © 2017 Geocycle 24

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Technology of processing MSW into fuel

Bio Drying Membrane

• Biological drying using Bacteria from organic waste

• Special membrane that can evaporate water but will not penetrate water from outside
• Air flow and turning process to help bacteria stay alive during the drying process
• It takes 21 days of the drying process to produce RDF with the specifications required by the Cement
plant
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Technology of processing MSW into fuel

RDF specifications that can be used in the cement industry
RDF
NCV kcal/kg 3.000

H20/moisture % 25
Ash % 15
Chlorine % 0.8
Sulfur % 0.5

From our commissioning at RDF Plant in Cilacap, the drying

processing of fresh MSW can produced +/- 50% of RDF
product that consist of:

1. Inert (0-20mm) equivalent with compost  15%

2. RDF Product (20-50mm)  51%
3. Reject product ( >50mm) Oversize  34% (Re-shredded)
and combined into RDF product

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Case Study - Cilacap MSW to RDF Pilot Project

Cilacap Jeruk Legi

Suhu dalam tanur

>1.800°C

5 - 15 ton per day

120 ton per day Waste processing facility residu (+/- 15%)
Fresh waste

40 - 60 ton per day

RDF /product
+/- 35 % air
(+/- 50% )
Will
evaporate
during drying 1 - 3 ton per day
process Recyclable
materials( >3% ) SBI Cilacap

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Process Flow MSW to RDF in Jeruk Legi Cilacap

Weigh Bridge Sorting process Pre Treatment area

Weighing Truk Sorting by waste pickers Shredding

Unloading
Bay
Delivery RDF

Product
Reject

Loading & Delivery RDF Inert

Drying Process
Waste storage AF Feeding Facility

Kiln Awaiting BAST

from KLHK to
Cilacap
Regency
RDF ready to be fed Feed to Kiln
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Cooperation concept between Cilacap Regency, RDF

operator and SBI
Waste collection Waste processing Off Taker

Govt role RDF Operator as Cement Plant

business unit Suhu dalam tanur
>1.800°C

Transporting Transporting
waste to RDF to cement
plant facility plant

Waste processing facilities

Managing Risk at Kiln:
• Waste processing
• Emission
Manage
• Storing
• Recyclables • Production
Residue and
Leachate
Treatment

Regency government
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Case Study - Cooperation with DKI Jakarta for Landfill Mining

Project Background:
• DKI government are required to find solution of
their volume waste that goes in Bantagebang –
7.500ton per day
• Capacity at Bantargebang are vastly reduced
over many years of utilization
• The solution need to apply in the next 2-3 years

PT SBI Solution:
• Landfill mining: To conduct landfill mining for
the old waste volume to be co-processed at
cement Kiln.  A study need to done to ensure
waste quality that fit cement plant requirement

Project status:
• Signed 1 year MOU to conduct landfill mining study up to January 2020
• We have collected and study a sample up to 5 meter depth of the designated old waste pile
• Operational target for landfill mining Q1 2020
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Development Planning with other cities

• RDF for Lhoknga Plant:
- Early stage proposal development ready to
be presented to Banda Aceh government

• RDF for Tuban Plant:

- Conducted mapping to confirm volume data
- Follow Up study for details follow up

• RDF Jogjakarta:
- Follow up with Government for their
Piyungan dump site  Whether or not RDF will
be their preference solution.

• Dlevelopment of potential RDF market:

- Exploring other market outside cement
plant such as other thermal processing
industry (Coal-Based Power Plant)

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Lesson Learned and Challenges

• Mindset
Required extensive lead time • Technology selection
to introduce, propose and
execute project • Business modelling
• Tender process

Financial engineering scheme • Tipping fee mechanism

to enable all stakeholders
• CAPEX and OPEX cost sharing between stakeholders
participation and project
viability (Local city • Less aid fund available in Indonesia for waste
government in particular): management

• Environmental regulation discourage cement plant

Regulation using AFR
support/consistency to
support RDF project • Provincial government still having issues on how to
access state budget on the waste disposal fee

RDF HIL - Geocycle/EKONID, 2018-08-15 © 2018 PT. Holcim Indonesia Tbk

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The Benefits
Profitable and beyond by creating sustainable solutions
Three main benefits are to be expected:

EXPECTED
EXPECTED BUSINESS EXPECTED SOCIAL
ENVIRONMENTAL
PROFIT BENEFIT
BENEFIT

• Revenue from • Drastically reduce the • Provision of land for

sustainable solutions need for landfilling active uses
• Reduced fuel costs • Reduce odor & leachate • Better working
• Increased TSR • Significant greenhouse environment for waste
• Brand building gas reduction pickers
• Better living condition

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